In aggregate, smart-beta funds that focus on dividends and yield have taken in more money this year than every other factor cohort, except for low volatility. Amid gyrations in the bond market, investors are looking to safer corners of the stock market.
“People are looking for yield anywhere they can get it,” and with volatility creeping into the bond market, investors are turning to stable stocks, said JJ Kinahan, chief market strategist at TD Ameritrade. “If you’re a long-term investor, right now, that’s something that may make sense until you get some clarity from what is going on with interest rates.”
--With assistance from Jonathan Ferro.
This article was provided by Bloomberg News.